• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Oil returns to triple digits ahead of ECB

Jun 06 2012 13:08 Reuters

Related Articles

Oil higher as G7 talks calm worries

Slowdown fears hit shares, commodities

Oil slides further on demand concerns

Oil rises on bargain hunting

Oil dips on eurozone, US demand worries

Oil price slumps under $100

 

London - Oil climbed back above $100 a barrel on Wednesday, rising along with other commodities and the euro as investors hoped a European Central Bank policy meeting later would steer the eurozone out of crisis.

Brent crude surged to an intra-day high of $100.43 a barrel before easing back to $100.31 - a gain of $1.47 by 10:41 GMT. US crude climbed $1.16 to $85.45.

"A slight brightening of sentiment on the financial markets and a weaker US dollar are putting wind in the sails of oil prices this morning," said a Commerzbank research note.

The market will closely monitor Wednesday's meeting of the European Central Bank, widely seen as the only institution capable of immediate action on behalf of the eurozone.

The darkening outlook for the world economy has also sparked hopes the United States, the top oil-consuming nation, would introduce new stimulus measures.

However, two top Federal Reserve officials suggested on Tuesday the US central bank was not ready to ease monetary policy at a meeting later this month as the economic outlook had not deteriorated to the point where action was warranted.

Brent has struggled to recover from a near 25% drop in oil prices over the past three months as investors have yet to be convinced that European Union leaders can prevent a breakup of the single currency.

"We probably need to see a more significant rally out of this level to be more confident we have a corrective rally going on," said Ric Spooner, chief market analyst at CMC Markets.

"We have gone from pricing in a potential supply shortage because of the situation in Iran ... to a market that is more than adequately supplied."

But oil found support from a larger-than-expected decline in US crude stocks. On Tuesday, the industry group American Petroleum Institute reported a 1.765 million barrel drop in inventories last week, more than triple the amount expected.

Weekly inventory data from the US Energy Information Administration, which typically carries more weight in the market than API estimates, will be released later on Wednesday. 

europe debt crisis  |  commodities  |  markets  |  oil
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Ramphele: ANC can be defeated

The African National Congress can be defeated, Agang SA leader Mamphela Ramphele has told supporters in Temba near Hammanskraal.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...